RE: News Release- Fully Funded for 2013 Drill Prog

CALGARY, Dec. 18, 2012 /CNW/ - Petroamerica Oil Corp. (TSX-V: PTA) ("Petroamerica" or the "Company"), a junior oil and gas company operating in Colombia is pleased to announce its 2013 capital program of $70.0 million for exploration, appraisal and development activities in Colombia which is expected to be fully funded through existing working capital and cash flow.

The 2013 Capital Program, by category, can be summarised as follows:

Capital Number

of Wells

Exploration $27.0 5

Appraisal 8.0 1

Development 35.0 7

Total $70.0 13

Note: All dollar values are in millions of Canadian dollars

In 2013 Petroamerica's activities are expected to remain focused solely on the Llanos Basin of Colombia. The Company intends to participate in the drilling of five exploration wells throughout the year, with two exploration wells on the CPO-1 Block, and one each on the El Porton, LLA-10 and Los Ocarros Blocks, one well to appraise the La Casona discovery on the El Eden Block and up to six development wells and one water-disposal well on the Las Maracas Field. Further to this, the Company expects to complete the permanent production facility at the Las Maracas Field, which is designed to initially handle up to 40,000 barrels of fluid per day and expected to be operational by the end of the second quarter 2013, as well as the Balay permanent production facility.

For 2013, excluding any exploration drilling success or future production arising from appraisal activities at the La Casona discovery, the Company is projecting its share of production to average approximately 4,500 bopd gross Company working interest. Along with current cash on-hand, this production rate is expected to provide sufficient cash resources to fully fund the Company's capital program for the year.

The Company is also pleased to announce that, in recognition of his significant contribution to the recent exploration and production success of the Company, effective immediately Dr. Ralph Gillcrist has been appointed as the Chief Operating Officer of Petroamerica in addition to remaining Executive Vice President Exploration and Business Development. Dr. Gillcrist has more than 23 years of international experience in the oil and gas industry and has been in charge of the Company's exploration, appraisal and business development efforts since he joined Petroamerica in 2010.

About Petroamerica:

Petroamerica Oil Corp. is a junior oil and gas exploration and production company with activities in Colombia. Petroamerica produces approximately 3,700 barrels of oil per day (Company gross) from two oil discoveries, has one new discovery under appraisal and has interests in seven exploration blocks, all located in Colombia's Llanos Basin. Petroamerica's shares are listed on the TSX Venture Exchange under the symbol "PTA".

Forward Looking Statements

This news release includes forward-looking statements related to the expected occurrences in relation to the properties identified including expectations regarding the location, production results and timing of drilling test wells, expectations regarding expected cash flow from operations and expectations regarding the timing of completion of production facilities. A multitude of factors can cause actual events to differ significantly from any anticipated development and although Petroamerica believes that the expectations represented by such forward-looking statements are reasonable; there can be no assurance that such expectations will be realized. These forward looking statements are based upon assumptions that Petroamerica has made concerning the oil and gas industry in Colombia, the reliability of available data regarding the properties, and the continuing market for oil and gas. Risk factors may include the uncertainty of conducting operations under a foreign regime, the availability of labour and equipment, the fluctuating price of oil and gas, and Petroamerica's dependence upon other participants in the property areas. Neither Petroamerica nor any of its subsidiaries nor any of its officers or employees guarantees that the assumptions underlying such forward-looking statements are free from errors, nor do any of the foregoing accept any responsibility for the future accuracy of the opinions expressed in this document or the actual occurrence of the forecasted developments.